Tiptop adds a new twist to BNPL by applying exchange value to new purchases – digital transactions

Tiptop Labs Inc., a payment services provider, has launched a “buy now, pay later” program that allows customers to exchange merchandise for discount vouchers on new purchases at select online retailers.

The idea of ​​applying trade-in value to a new purchase came from Tiptop, a trade-in-only app it launched about a year ago. Including trade-in value in the cost of a purchase is a way to increase consumer purchasing power, the company says. It says that U.S. households own an average of $1,800 worth of goods that correspond to items that are eligible for trade in Tiptop’s catalog. The Tiptop catalog lists 50,000 items that are eligible for trade, such as an iPhone or a gaming console.

The new program is aimed at consumers who would otherwise try to sell products through an e-commerce marketplace such as eBay or Apple Inc.’s Apple Trade In program. The company says the latter allows consumers to trade Apple-branded products in exchange for credit toward the purchase of a new product. The goal of TipTop is to allow trade-ins between different branded products and eliminate the need to list the item on the marketplace.

“Buy now, pay later does not reduce the price of an item, no matter how good the terms are. (It) simply spreads the cost of the purchase over multiple payments,” a Tiptop spokesman says. “When you add commercial value to BNPL, it reduces the purchase price. It’s money found for the consumer.”

To determine trade-in value, Tiptop uses a machine learning model that shows the current market value of the item. Once the product is approved for circulation, consumers can scan a QR code that generates a prepaid shipping label. The consumer then packs the item and takes it to the carrier. Alternatively, consumers can request an on-demand courier service through Uber.

Customers using Tiptop’s interest-free BNPL offer can pay for their purchase in four installments. Initial retail partners include Nothing Tech, Cradlewise, Backbone, Phonedaddy and King of Christmas.

The Tiptop app is compatible with Shopify and plans to be compatible with other popular e-commerce platforms such as Adobe Commerce, BigCommerce, and WooCommerce.